TIDMIIT
RNS Number : 6598U
Independent Investment Trust PLC
20 January 2017
RNS Announcement: Preliminary Results
-------------------------------------
The Independent Investment Trust PLC
------------------------------------
The following is the unaudited preliminary statement for the
year to 30 November 2016 which was approved by the board on 19
January 2017.
Chairman's Statement
--------------------
During the year to 30 November 2016, our company produced a net
asset value (NAV) total return of 5.0%(1) . Theoretical investments
in the FTSE All-Share Index and the FTSE World Index would have
produced total returns of 9.8%1 and 25.6%1 respectively. A widening
of the discount(2) - from 6.9% to 11.2% - led to a share price
total return of 0%1. This is clearly a disappointing result and one
that leaves us bottom of the Association of Investment Companies'
Global sector of investment trusts for the year in terms of NAV
total return. Fortunately, it follows a very good year and so we
are still comfortably above median for the three and five year
periods ending 30 November 2016.
For us the most important development of the year was the UK
vote to leave the EU in the June referendum. Primarily through the
ensuing depreciation of the pound, this caused two problems for us.
First, in constant currency terms the UK stockmarket (in which the
vast majority of our assets were invested throughout the year)
lagged behind most other stockmarkets and thus the FTSE World
Index. Secondly, within the UK stockmarket domestically orientated
sectors (which were disproportionately represented in our
portfolio) performed less well than those with international
exposure. Particularly painful for us was the poor performance of
our large housebuilding stake, which had been such a positive
contributor to our results in 2015. A remarkable feature of the
year has been that apart from companies coming into the portfolio
through their initial public offerings (IPOs), we have only made
one purchase - an addition to our large holding in Redrow. Our
experience with IPOs continues to be good on balance, although
Motorpoint is currently a notable exception.
The general economic background has changed little over the last
year: growth has remained lacklustre in most countries; interest
rates have remained at abnormally low levels by historic standards;
and stockmarkets have been boosted by loose global monetary
conditions. Towards the end of our year, there were signs that the
long awaited correction in global bond markets might be starting.
Perhaps the most interesting developments were on the political
front, where referendum results in Europe and the election result
in the USA signalled dissatisfaction with the established economic
policies of recent years. The risk of a more protectionist world
appears to have increased significantly.
The only significant change in our sectoral distribution over
the year was a material reduction in our exposure to technology and
telecommunications as we sold out of our Chinese internet holdings
and took profits in FDM and Gamma Communications, two of our more
successful IPO investments of recent years. We ended our year with
cash balances of just under 5% (2% at 30 November 2015). Further
comments on the portfolio can be found in the Managing Director's
Report.
Despite the disappointing results in the year under review, our
long term record continues to provide grounds for encouragement:
for the period from inception to 30 November 2016, we produced an
NAV total return of 476%1, equivalent to a rate of roughly 11.6%
per annum, of which 2.8% per annum can be offset by RPI inflation.
By comparison, the notional return available from the FTSE
All-Share Index over the period amounted to 117%1, or 5.0% per
annum.
Earnings per share for the year were 7.93p (8.3p in 2015).
Having already paid an interim dividend of 5.0p, we have decided
not to propose a final dividend for 2016, but instead to pay a
special dividend of 2.5p (3p in 2015). This will be paid on 6 April
with an ex-dividend date of 23 February. The regular dividend for
the year is therefore maintained at 5p, while the total dividend
for the year is reduced from 8p to 7.5p. For 2017 we plan to revert
to a pattern of paying an interim and a final with any surplus
income being distributed by way of special dividend.
Our ongoing expenses ratio(3) rose during the year - from 0.32%
to 0.34%. Even so, we remain one of the lowest cost providers in
our industry.
After a brief period of trading at a premium2 to net asset
value, our shares have reverted to trading at a discount2. As in
the past, we stand ready to repurchase shares on terms that are
fair to both departing and continuing shareholders. In the year
under review we made a single purchase of 600,000 shares at a
discount2 of 4.3%.
As always, there are plenty of things to worry about in the
general economic and stockmarket background. Of particular concern
to us at the moment are: the uncertainties surrounding the Brexit
negotiations; the high levels of debt around the world; the impact
of the economic policies of the new US administration; the outlook
for interest rates and bond yields; and general stockmarket
valuations, which appear high by historic standards. These concerns
notwithstanding, we continue to be pleased with the quality of the
companies in our portfolio and optimistic about their ability both
to exploit favourable developments and to cope with unfavourable
ones. This is particularly the case with our housebuilding
holdings, around a quarter of assets, most of which delivered
exemplary trading performances in 2016 and all of which are in
excellent shape to withstand even a major deterioration in trading
conditions should it occur. The rest of the portfolio is invested
largely in smaller companies, including several recent issues,
which are seeing strongly growing demand for their products or
services.
Once again, we should like to encourage you to come to the AGM,
which is to be held in the Baillie Gifford offices at Calton Square
at 4.30pm on 23 March 2017. It will help our planning if we know
how many shareholders are likely to attend, and I shall be grateful
if you will mark the proxy form accordingly and return it to the
Company's registrars. I look forward to seeing as many of you as
possible there.
Douglas McDougall
19 January 2017
(1.) Total returns include the reinvestment of dividends on the
date the shares are quoted ex-dividend. Source: Baillie
Gifford/Thomson Reuters Datastream.
(2.) The premium/discount is the positive/negative difference
between the Company's quoted share price and its underlying NAV per
share expressed as a percentage of the NAV per share.
(3.) Ongoing charges represents administrative expenses as a
percentage of average shareholders' funds.
Managing Director's Report
--------------------------
Our performance over the year has been covered in the Chairman's
Statement.
One of the hazards confronting the long-term investor in
housebuilding shares is the difficulty of forecasting the
industry's short-term outlook. As battle-hardened industry
enthusiasts we accept with stoicism the pain this characteristic
sometimes inflicts upon us, but we do consider ourselves a little
unlucky when housebuilding share prices fall dramatically in
anticipation of developments that do not materialize, which is what
happened to us in the middle of 2016. In the immediate aftermath of
the referendum on British membership of the EU, a number of
industry experts, many of them in the employment of large London
investment banks owned overseas, reached the conclusion -
apparently independently - that the decision to leave would have
devastating short-term implications for housing volumes and house
prices. The resulting stockmarket panic was impressive, even by the
industry's exalted standards: most of our holdings experienced
price declines of the order of 40% during the fortnight beginning
24 June. To date and with the sole exception of McCarthy and Stone,
none of them has experienced any significant adverse effects from
the vote, but many of the experts are clinging to the hope that
this is disaster deferred rather than disaster averted, a hope that
is still generously reflected in valuations. Our principal worries
are more to do with government policy and the outlook for interest
rates. The government has shown signs of wanting to interfere with
the industry on the grounds, which we consider spurious, that it is
deliberately hoarding land that could be used for building; and it
can be argued that mortgage rates have already begun to rise. We do
not believe that either issue has the capacity to undermine the
long-term argument for investing in housebuilders - which is built
on a chronic shortage of supply and high barriers to entry - but
each clearly has the potential to hurt sentiment, already fragile,
towards the sector. This is one of those occasions when we think it
right to concentrate on the long-term picture and to ignore the
shocks delivered by an increasingly febrile stockmarket.
The scale of our existing position in the industry made us slow
to capitalize on the eye-catching values thrown up by the panic,
but we did eventually add GBP3.4m to our Redrow holding. This had a
mitigating influence on a most disappointing overall performance:
despite the addition, the value of our stake declined from GBP56.5m
at 30 November 2015 to GBP51.0m at 30 November 2016.
Fortunately, we fared better with our large commitment to
technology and telecommunications: a stake worth GBP62.3m at 30
November 2015 had fallen in value to GBP44.6m by 30 November 2016,
but this was after net sales of GBP23.2m. We made profitable
disposals of our two Chinese internet companies, Alibaba and Baidu,
and took further profits in FDM and Gamma Communications. Kainos,
the software consultancy, had a disappointing year as profits were
hit by investment in new markets, but our longstanding holding in
Herald made good progress despite the persistence of a discount
that gives no credit for the fund's excellent long-term
performance. Finally, we made a small investment in Blue Prism, a
leading player in the emerging field of software process
automation. To date, this investment has been surprisingly
profitable as the company's revenues have exceeded all expectations
by a considerable margin. The company, by contrast, has yet to make
a profit.
The feature of our stake in the travel and leisure industries
has been the strong performance of On the Beach, which we bought at
IPO in September 2015. Despite difficult conditions in the package
holiday market, it produced sparkling results and appears set to
make further progress in the years ahead. Gym Group had a
disappointing share price performance, but this may have been more
to do with its high valuation at the start of our year than with
its trading performance, which appears to be in line with
expectations. Finally, a new holding in Hollywood Bowl, an operator
of ten pin bowling centres, made a satisfactory debut. Overall, a
stake worth GBP15.3m at 30 November 2015 had risen in value to
GBP24.7m by 30 November 2016 after net purchases amounting to
GBP6.1m.
It has been an excellent year for our industrial holdings. Our
old favourite Ashtead has traded well and has been singled out by
investors as a beneficiary of the US infrastructure spending
promised by Donald Trump. A new holding in Luceco, bought in
October, has got off to a good start. Luceco is a manufacturer of
electrical equipment and LED lighting products with its own factory
in China. Prospects for its LED lighting products appear
particularly good. Overall, a stake worth GBP15.3m at 30 November
2015 had grown in value to GBP21.4m by 30 November 2016 after net
sales of GBP0.2m.
Our retail holdings have had a disappointing year: a stake worth
GBP11.1m at 30 November 2015 had only grown in value to GBP15.2m by
30 November 2016 despite net purchases of GBP9.6m. A new holding,
the nearly new car retailer Motorpoint, saw trading badly affected
by consumer uncertainty around the time of the referendum. Our old
friend Dunelm had a quiet year in trading terms and suffered a
derating in consequence, and we realized a small loss on our sale
of SCS. On a happier note, the clothing retailer Joules, also a new
holding, made a satisfactory debut.
Our consumer services holdings also had a difficult time with
the Gama Aviation share price being hit particularly hard by soft
trading conditions in Europe and NAHL being affected by proposed
changes to the system for personal injury litigation. The AA had a
dull year as earnings were affected by a major investment programme
and we made a poor decision to sell our holding in BCA Marketplace.
Overall, a stake worth GBP22.2m at 30 November 2015 had fallen in
value to GBP10.7m by 30 November 2016 after net sales of
GBP6.7m.
Our holding in the soft drinks company, Fever-Tree, has once
again done enough to merit a paragraph to itself with the share
price almost doubling over the twelve months. Despite a further
reduction early in the year (we have now realized the full value of
our original investment in the company), this led to its becoming
our biggest holding at 30 November 2016. The valuation is a source
of concern, but the scale of the opportunity facing the company and
the lack of obvious competitive threats persuade us that it is
worth running our position.
Elsewhere in the portfolio, Telecom Plus saw a modest recovery
in its share price as energy prices started to rise, but the value
of our SThree holding fell significantly as trading conditions in
the recruitment market remained tough. The distributor of audio
visual equipment, Midwich, staged a rather disappointing debut
despite producing better results than we were expecting. Polar
Capital Insurance Fund had an excellent year, extending its fine
long-term record while Bluefield Solar Income delivered a good
yield and a relatively stable share price. Finally, our small
holding in the Canadian oil company, Bankers Petroleum, was sold
after the announcement of a Chinese bid for the company.
Max Ward
19 January 2017
List of Investments as at 30 November 2016 (unaudited)
Value Gains/ Value
2015 Net transactions (losses) 2016
Sector Name GBP'000 GBP'000 GBP'000 GBP'000 %
---------------------- ------------------------- --------- ----------------- ---------- --------- ------
Housing Bellway 5,230 - (348) 4,882 2.2
Berkeley Group 6,414 - (1,462) 4,952 2.2
Crest Nicholson 16,065 - (2,952) 13,113 5.9
McCarthy and Stone 11,287 - (2,972) 8,315 3.8
Persimmon 3,830 - (432) 3,398 1.5
Redrow 13,626 3,426 (708) 16,344 7.4
56,452 3,426 (8,874) 51,004 23.0
--------- ----------------- ---------- --------- ------
Industrials Ashtead Group 15,302 (5,302) 5,640 15,640 7.1
Luceco - 5,080 664 5,744 2.6
15,302 (222) 6,304 21,384 9.7
--------- ----------------- ---------- --------- ------
Retailing Dunelm Group 9,760 (1,896) (1,956) 5,908 2.7
Joules Group - 3,458 202 3,660 1.7
Land of Leather* - - - - -
Motorpoint - 9,312 (3,642) 5,670 2.6
SCS Group 1,356 (1,279) (77) - -
--------- ----------------- ---------- --------- ------
11,116 9,595 (5,473) 15,238 7.0
--------- ----------------- ---------- --------- ------
Consumer Services AA 5,388 - (80) 5,308 2.4
BCA Marketplace 6,920 (6,728) (192) - -
Gamma Aviation 5,400 - (3,040) 2,360 1.1
NAHL Group 4,496 - (1,440) 3,056 1.4
--------- ----------------- ---------- --------- ------
22,204 (6,728) (4,752) 10,724 4.9
--------- ----------------- ---------- --------- ------
Travel and Leisure Hollywood Bowl Group - 6,444 236 6,680 3.0
On the Beach Group 9,116 (375) 4,519 13,260 6.0
The Gym Group 6,150 - (1,380) 4,770 2.2
--------- ----------------- ---------- --------- ------
15,266 6,069 3,375 24,710 11.2
--------- ----------------- ---------- --------- ------
Business Services Midwich - 5,002 (57) 4,945 2.2
SThree 4,909 - (784) 4,125 1.9
--------- ----------------- ---------- --------- ------
4,909 5,002 (841) 9,070 4.1
--------- ----------------- ---------- --------- ------
Technology and Alibaba Group - China 2,791 (4,187) 1,396 - -
Telecommunications Baidu - China 10,135 (7,795) (2,340) - -
Blue Prism - 1,482 4,298 5,780 2.6
FDM Group 20,800 (8,535) 860 13,125 5.9
Gamma Communications 9,180 (4,117) (328) 4,735 2.1
Herald Investment Trust 14,720 - 1,780 16,500 7.5
Kainos Group 4,690 - (235) 4,455 2.0
--------- ----------------- ---------- --------- ------
62,316 (23,152) 5,431 44,595 20.1
--------- ----------------- ---------- --------- ------
Oil and Gas Bankers Petroleum -
Producers Canada 309 (408) 99 - -
Beverages Fever-Tree Drinks 11,500 (1,256) 8,998 19,242 8.7
--------- ----------------- ---------- --------- ------
Utilities Telecom Plus 6,774 (2,226) 452 5,000 2.3
--------- ----------------- ---------- --------- ------
Polar Capital Global
Insurance Fund -
Non Life Insurance Ireland 3,469 - 939 4,408 2.0
Renewable Energy Bluefield Solar Income
Funds - Channel Islands 5,125 - 62 5,187 2.3
--------- ----------------- ---------- --------- ------
Total Investments 214,742 (9,900) 5,720 210,562 95.3
Net Liquid Assets 4,229 5,940 139 10,308 4.7
------------------------------------------------- --------- ----------------- ---------- --------- ------
Shareholders'
Funds 218,971 (3,960) 5,859 220,870 100.0
------------------------------------------------- --------- ----------------- ---------- --------- ------
All holdings are in equities domiciled in the UK unless
otherwise stated.
* Suspended Security.
Income statement
----------------
For the year ended For the year ended
30 November 2016 (unaudited) 30 November 2015 (audited)
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Gains on investments - 5,720 5,720 - 43,695 43,695
Currency gains - 139 139 - 268 268
Income (note 2) 5,139 - 5,139 5,382 - 5,382
Administrative expenses (719) - (719) (635) - (635)
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return on ordinary activities before taxation 4,420 5,859 10,279 4,747 43,963 48,710
Tax on ordinary activities - - - (9) - (9)
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return on ordinary activities after taxation 4,420 5,859 10,279 4,738 43,963 48,701
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Net return per ordinary share: basic (note 3) 7.93p 10.51p 18.44p 8.30p 77.01p 85.31p
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
Note:
Dividends per share paid and payable in respect
of the year (note 4) 7.50p 8.00p
-------------------------------------------------- ---------- ---------- --------- --------- --------- ---------
The total column of this statement is the profit and loss
account of the Company. The supplementary revenue and capital
columns are prepared under guidance published by the Association of
Investment Companies.
All revenue and capital items in this statement derive from
continuing operations.
A Statement of Comprehensive Income is not required as all gains
and losses of the Company have been reflected in the above
statement.
Balance sheet
-------------
At 30 November 2016 (unaudited) At 30 November 2015 (audited)
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------- ---------------- --------------- --------------- --------------
Fixed assets
Investments held at fair value through profit or
loss 210,562 214,742
Current assets
Debtors 115 413
Cash and cash equivalents 10,247 3,851
-------------------------------------------------- ---------------- --------------- --------------- --------------
10,362 4,264
-------------------------------------------------- ---------------- --------------- --------------- --------------
Creditors
Amounts falling due within one year (54) (35)
-------------------------------------------------- ---------------- --------------- --------------- --------------
Net current assets 10,308 4,229
-------------------------------------------------- ---------------- --------------- --------------- --------------
Total net assets 220,870 218,971
-------------------------------------------------- ---------------- --------------- --------------- --------------
Capital and reserves
Called up share capital 13,882 14,032
Share premium account 15,242 15,242
Special distributable reserve 16,625 18,831
Capital redemption reserve 2,650 2,500
Capital reserve 167,982 162,123
Revenue reserve 4,489 6,243
-------------------------------------------------- ---------------- --------------- --------------- --------------
Shareholders' funds 220,870 218,971
-------------------------------------------------- ---------------- --------------- --------------- --------------
Net asset value per ordinary share (note 5) 397.7p 390.1p
-------------------------------------------------- ---------------- --------------- --------------- --------------
Statement of changes in equity
------------------------------
For the year ended 30 November 2016 (unaudited)
Called up Special Capital
share Share premium distributable redemption Capital Revenue Shareholders'
capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 1
December 2015 14,032 15,242 18,831 2,500 162,123 6,243 218,971
Net return on
ordinary
activities
after
taxation - - - - 5,859 4,420 10,279
Shares bought
back for
cancellation
(note 5) (150) - (2,206) 150 - - (2,206)
Dividends paid
during the
year
(note 4) - - - - - (6,174) (6,174)
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 30
November 2016 13,882 15,242 16,625 2,650 167,982 4,489 220,870
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
For the year ended 30 November 2015 (audited)
Called up Special Capital
share Share premium distributable redemption Capital Revenue Shareholders'
capital account reserve reserve reserve* reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 1
December 2014 14,467 15,242 24,413 2,065 118,160 5,513 179,860
Net return on
ordinary
activities
after
taxation - - - - 43,963 4,738 48,701
Shares bought
back for
cancellation (435) - (5,582) 435 - - (5,582)
Dividends paid
during the
year
(note 4) - - - - - (4,008) (4,008)
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
Shareholders'
funds at 30
November 2015 14,032 15,242 18,831 2,500 162,123 6,243 218,971
-------------- ------------- -------------- ------------- ------------- --------- -------------- --------------
* The Capital Reserve balance at 30 November 2016 included an
investment holding gain on fixed asset investments of GBP57,240,000
(2015 - gain of GBP64,549,000).
Notes (unaudited)
-----------------
1. The Financial Statements for the year to 30 November 2016 have been prepared in accordance
with The Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102')
which the Company must adopt for its financial year ending 30 November 2016. Following the
application of the new reporting standard and the AIC's issued Statement of Recommended Practice
issued in November 2014, there has been no impact on the balances at 1 December 2014 or on
the Company's Income Statement, Balance Sheet or Statement of Changes in Equity (previously
called the Reconciliation of Movements in Shareholders' Funds) for the period previously
reported.
The Company has elected not to present a Statement of Cash Flows for the current year as a
Statement of Changes in Equity has been provided and substantially all of the Company's
investments
are highly liquid and are carried at market value. The Company has early adopted the amendments
to section 34 of FRS 102 regarding fair value hierarchy disclosures.
-------------------------------------------------------------------------------------------------
2. Income Year to Year to
30 November 2016 30 November
GBP'000 2015
GBP'000
--------------------------------- ------------------------- -----------------------------------
Income from investments and interest
receivable 5,120 5,356
Other income 19 26
------------------------------------- ------------------------- -----------------------------------
5,139 5,382
------------------------------------- ------------------------- -----------------------------------
3. Net return per Year to 30 November 2016 Year to 30 November 2015
ordinary share
Revenue Capital Total Revenue Capital Total
---------------- --------------- ---------------- ------- ------------ ------- ------------
Net return on
ordinary activities
after taxation
(GBP'000) 4,420 5,859 10,279 4,738 43,963 48,701
Weighted average
number of ordinary
shares in issue
during the year 55,738,196 57,087,403
-------------------- ------------------------------------------ -----------------------------------
Net return per
ordinary share:
Basic 7.93p 10.51p 18.44p 8.30p 77.01p 85.31p
-------------------- --------------- ---------------- ------- ------------ ------- ------------
Returns per ordinary share are based on the return for the financial year and on the weighted
average number of ordinary shares in issue during the year as shown above. There are no dilutive
or potentially dilutive shares in issue.
-------------------------------------------------------------------------------------------------
4. Ordinary dividends Year to Year to
30 November 2016 30 November
2015
Pence GBP'000 Pence GBP'000
--------------------------------- ---------------- ------- --------------------- ------------
Amounts recognized as
distributions in the year:
Previous year's second interim (2015
- final) dividend paid 15 February
2016 3.00 1,684 3.00 1,719
Previous year's special dividend paid
15 February 2016 3.00 1,684 2.00 1,146
Interim dividend paid 31 March 2016 5.00 2,806 2.00 1,143
------------------------------------- ---------------- ------- --------------------- ------------
11.00 6,174 7.00 4,008
------------------------------------- ---------------- ------- --------------------- ------------
Set out below are the total dividends paid and proposed in respect of the financial year,
which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010
are considered. The revenue available for distribution by way of dividend for the year is
GBP4,420,000 (2015 - GBP4,738,000).
Year to Year to
30 November 2016 30 November 2015
Pence GBP'000 Pence GBP'000
--------------------------------- ---------------- ------- ------------ =======================
Amounts paid and payable in
respect of the year:
Adjustment to previous year's final
dividends re shares bought back - - - (28)
Interim dividend paid 31 March 2016 5.00 2,806 2.00 1,143
Second interim dividend - - 3.00 1,684
Special dividend payable 6 April 2017 2.50 1,388 3.00 1,684
7.50 4,194 8.00 4,483
------------------------------------- ---------------- ------- ------------ -----------------------
The special dividend will be paid on 6 April 2017 to all shareholders on the register at the
close of business on 24 February 2017. The ex-dividend date is 23 February 2017.
---------------------------------------------------------------------------------------------------
5. Net asset value per ordinary At 30 November At 30 November
share 2016 2015
GBP000 GBP'000
--------------------------------- ------------------------- -------------------------------------
Net asset value attributable to
ordinary shares 220,870 218,971
------------------------------------- ------------------------- -------------------------------------
Net asset value per share is based on net assets (as shown above) and on 55,530,000 shares
(2015 - 56,130,000), being the number of shares in issue at the year end. There are no dilutive
or potentially dilutive shares in issue.
During the year the Company bought back 600,000 (2015 - 1,739,000) ordinary shares of 25p
each at a cost of GBP2,206,000 (2015 - GBP5,582,000). At 30 November 2016 the Company had
authority remaining to buy back a further 7,813,887 ordinary shares.
6. Transaction costs incurred on the purchase and sale of the investments are added to the purchase
cost or deducted from the sale proceeds, as appropriate. During the year, transaction costs
on purchases amounted to GBP64,000 (2015 - GBP202,000) and transaction costs on sales amounted
to GBP99,000 (2015 - GBP162,000).
7. The financial information set out above does not constitute the Company's statutory accounts
for the year ended 30 November 2016. The financial information for 2015 is derived from the
financial statements for 2015 which have been delivered to the Registrar of Companies. The
Auditors have reported on the 2015 accounts; their report was unqualified and did not contain
a statement under sections 498 (2), (3) or (4) of the Companies Act 2006. The statutory accounts
for 2016 will be finalised on the basis of the financial information presented in this preliminary
announcement and will be delivered to the Registrar of Companies following the Company's Annual
General Meeting.
8. The Report and Accounts will be available on the Company's website
www.independentinvestmenttrust.co.uk
on or around 17 February 2017.
9. None of the views expressed in this document should be construed as advice to buy or sell
a particular investment.
---------------------------------------------------------------------------------------------------
Neither the contents of the Company's website nor the contents
of any website accessible from hyperlinks on the Company's website
(or any other website) is incorporated into, or forms part of, this
announcement.
- ends -
Legal Entity Identifier: EMMWZ68BJXG580FSQ522
Regulated Information Classification: Additional regulated
information required to be disclosed under the laws of a Member
State of the European Union
This information is provided by RNS
The company news service from the London Stock Exchange
END
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